2 Things I cannot continue the setup of the phone because it says looking for wireless but NEVER finds any. Also I cannot find ANY information about what the padlock icon means.. I have tried everything to finish but nothing works any ideas?????

You can disable wifi on Android, but it will have to be rooted first or using custom ROMs. In both cases, a factory reset won't do any good. Can you check if this is the case? You might need to do a recovery via Xperia Companion on the PC, or Flashtool.

Go to the Xperia Companion and select the Software Repair option. Follow the instructions so you can reinstall the ROM and format everything the phone already has in it. Since it is an used phone, the seller probably didn't format it as it should.

I have the exact same issue with my Xperia X Compact running Android 8. The phone was factory reset and now it has the padlock icon on the top left and won't connect to the internet to complete setup. I'd love to know if the previous posters found a solution because my phone is useless right now!